A new research report from Jeffries & Co. analyst Peter Misek claims that Apple’s plans to develop an HDTV are slowly but surely moving along. After a recent trip to Asia where he visited with various component suppliers, Misek writes that small quantities of HDTV parts are being sent to Apple’s display partners.

Evidence of commercial iTV production is starting: we believe specialty components have begun to ship to Apple’s Asia panel suppliers with polarized films, filters, and IGZO components starting to move in small quantities. We expect commercial production in May/ June with 2M to 5M builds likely. We still expect a CQ4 launch.

Misek anticipates that Apple’s rumored HDTV will launch during the fourth quarter of 2012, following full scale production which is expected to commence in either May or June. Misek expects the initial build volume to fall in the 2 million to 5 million range.

Lastly, Misek has upped his price target on Apple shares to $699. A high number to be sure, but shares of AAPL continue to skyrocket upwards in the wake of Apple’s new iPad announcement.